Insurance Expert On IT Disaster Recovery Plans

Network World reports: CIOs and IT managers must have a documented disaster recovery plan and built-in supplier redundancies to avoid the consequences of an IT systems crash similar to the one that claimed Virgin Blue’s check-in and operating systems earlier this year, an insurance expert has warned. IT Liability Insurance’s senior underwriter, David Gallagher, spoke to Computerworld Australia about the risks of outsourcing IT, saying that if proper procedures are not adhered to, the outcome could be detrimental.

“The risks for this type of IT failure are enormous – passengers demand refunds and reimbursement of other costs and expenses,” he said. “There is damage to the airlines brand, customer loyalty and reputation, and that means loss of future business.”